taxes

Is there a wealth tax on property in Spain?

Yes, Spain levies a wealth tax (Impuesto sobre el Patrimonio) on net assets above certain thresholds, including property.

Non-residents are taxed on Spanish assets only.

The threshold and rates vary by region.

In the Valencian Community, the tax-free allowance is €500,000, with rates from 0.28% to 3.5% on assets above that.

Your primary residence (if resident) has a €300,000 exemption.

For non-residents, there is no primary residence exemption.

The wealth tax applies to net assets — so mortgage debt reduces the taxable value.

Some regions have effectively abolished this tax, but Valencia has not.

A new temporary solidarity tax on large fortunes (Impuesto de Solidaridad) applies nationally for net assets over €3 million.

Tax planning is essential for high-value property purchases.

WOW-Estates recommends consulting a Spanish tax advisor before purchasing luxury properties.